US open: Dow gains 170 points as Greece's creditors agree to new bailout

US stocks pushed higher early on Monday after Eurozone leaders agreed to a third bailout programme for Greece.

Just after 15:00 BST, the Dow Jones Industrial Average was up 170 points to 17,930.71, while the S&P 500 and the Nasdaq gained 17 and 46 points respectively.

Greek deal

Eurozone leaders have agreed to give Greece another bailout, in return for the pension overhauls and sales-tax increases Prime Minister Alexis Tsipras and the Greek people had been so keen to avoid.

Eurogroup head Jeroen Dijsselbloem said the Greek deal will need to be voted in parliament after it has been discussed with the Eurogroup on Wednesday.

A formal decision will then follow by the end of the week, he added.

Nonetheless, “against this backdrop we, for now, maintain our 65% probability of Grexit and note significant risks of an early election in Greece,” analysts at Societe Generale said in a note.

“The tense negotiations over the weekend have, moreover, laid bare political divides with the euro area and we fear that this may slow the much needed progress towards a genuine Economic and Monetary Union.

“We expect capital controls in Greece and the ELA cap to remain unchanged short-term.”

European stocks rose as investors cheered news that Athens and its creditors have agreed on a bailout, removing the immediate threat of a financial collapse and assuaging concerns about a potential ‘Grexit’.

However, the euro fell 0.77% against the dollar, while the greenback gained 0.75% against the yen but shed 0.14% against the pound.

Gold futures dropped 0.21% to $1,155.50, while Chinese stocks dragged Asian markets higher following last week’s drastic selloff.

Oil falls

Oil prices tumbled as the uncertainty surrounding the Iranian nuclear deal lingered on, with negotiations now at a “make-or-break” point, according to sources cited by the Wall Street Journal.

West Texas Intermediate dropped 1.46% to $51.98 a barrel, while Brent crude lost 2.16% to $57.49 a barrel.

In company news, retailer Ascena Retail Group tumbled 14% after cutting its full-year earnings outlook late on Friday.

Master limited partnership MPLX LP tumbled 12.7% after announcing it intends to buy MarkWest Energy Partners LP for about $15.8bn, which send the latter's shares up by 12.3%

Oil and gas industry services providers Halliburton and Baker Hughes could be in focus after both firms agreed to extend the Justice Department’s antitrust review period of their $35bn merger until the end of November.

Health and fitness products producer Fitbit rose 2.54% after several banks initiated coverage of the stock with equal weight, buy and market perform ratings.

The economic calendar is relatively quiet on Monday, with the monthly budget statement for June, which is released at 19:00 BST, being the highlight of the session.